Real Industry (f/k/a Signature Group Holdings) and eight affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 17-12464. The holding company, which relies on the operations of its subsidiaries and external financing sources for its liquidity needs, is represented by Mark Minuti of Saul Ewing Arnstein & Lehr. In conjunction, Real Alloy Holding and its U.S. subsidiaries also filed Chapter 11 petitions; however, Real Alloy's operations in Germany, United Kingdom, Norway, Canada and Mexico and its Goodyear, AZ joint venture are not included in these filings. Real Alloy has entered into an agreement in principle with its existing asset-based facility lender and certain of its bondholders for continued use of its $110 million asset-based lending facility and up to $85 million of additional liquidity through debtor-in-possession financing that will provide Real Alloy the ability to continue to fund ongoing business operations. This financing is a consensual arrangement executed with Real Alloy's principal lender and holders of a majority of its bonds, with the ability to provide Real Alloy with immediate incremental liquidity. The Company explains, "Real Alloy's operations in the United States have been affected by severely tightened liquidity during the past year, due in part to recently constrained trade credit terms, which hindered Real Alloy's ability to timely refinance its $305 million 10% senior secured notes due January 2019 ('Senior Secured Notes') or to expand borrowing capacity under its asset-based lending facility. An extensive review by the Real Industry Board of Directors, Real Alloy Board, management, and advisors determined it would be in the best interest of all Real Alloy stakeholders to initiate the Chapter 11 proceedings." A corporate release further notes that Real Industry will initiate a plan of reorganization to preserve the value of its net operating loss tax carryforwards (NOLs). Real Industry further notes that Terry Hogan will continue as president and has been elected to the Real Alloy board. In addition, Michael Hobey has been named president and interim C.E.O. of Real Industry, and he will continue to serve as C.F.O. Hobey will also serve as C.F.O. at Real Alloy. Kyle Ross will continue to serve as C.I.O. at Real Industry; however, he has resigned from the Real Industry board.
The U.S. Bankruptcy Court issued an order selecting a mediator and governing mediation procedures in the Breitburn Energy Partners case. The order states, "The Court authorizes and appoints the Honorable Robert D. Drain (the 'Mediator') to serve as Mediator in these Chapter 11 Cases and to conduct a single mediation session as set forth herein. The Mediator is authorized to mediate any issues related to the Plan except for the issue relating to the cancellation of debt income ('CODI') raised by the Equity Committee….The joint mediation session shall take place (subject to change by the Mediator) on November 21, 2017, at a time and place to be fixed by the Mediator."
TerraVia Holdings filed with the U.S. Bankruptcy Court a Combined Disclosure Statement and Chapter 11 Plan of Liquidation. According to the Disclosure Statement, "The Combined Disclosure Statement and Plan groups the Debtors together solely for the purposes of describing treatment under the Combined Disclosure Statement and Plan, confirmation of the Combined Disclosure Statement and Plan, and making distributions in accordance with the Combined Disclosure Statement and Plan in respect of Claims against and Interests in the Debtors under the Combined Disclosure Statement and Plan. Notwithstanding such groupings, the Combined Disclosure Statement and Plan constitutes a separate chapter 11 plan of liquidation for each Debtor. The Combined Disclosure Statement and Plan is not premised upon and will not cause the substantive consolidation of any of the Debtors….On the Effective Date, each holder of an Allowed Convenience Claim shall receive, in full satisfaction of its Allowed Convenience Claim, payment in Cash equal to such Allowed Convenience Claim; provided, however, that if the aggregate of all Convenience Claims exceeds the amount in the Convenience Claim Pool, each Class 4 Creditor shall receive its Ratable Share of the Convenience Claim Pool. Class 4 initially shall consist of all General Unsecured Claims that are not Notes Claims that total $20,000 or less. Payment to Class 4 is in lieu of any treatment as a Class 5 Creditor. Any unsecured creditor with a General Unsecured Claim that is not a Notes Claim above $20,000 electing treatment as a Convenience Claim must affirmatively do so on its Class 5 Ballot." The Court subsequently granted interim approval to the Combined Disclosure Statement and Chapter 11 Plan of Liquidation (for solicitation purposes only) and scheduled a January 8, 2018 hearing to consider a final confirmation order, with objections due by December 29, 2017.
21st Century Oncology Holdings' patient care ombudsman filed with the U.S. Bankruptcy Court a third report for the period of September 19, 2017 through November 16, 2017. The ombudsman says, "Based upon what I have observed at the management level and at the nine facilities I have visited in Florida and California, I do not believe that the bankruptcy has negatively impacted operations at the patient level and, if asked, I would continue to recommend 21st Century Oncology to any in need of the cancer care provided at their facilities….It is apparent to me after visiting six facilities in Florida and three facilities in California, in addition to multiple conversations with management and regional VPs, that patient care has not been impacted in any material manner by the bankruptcy cases. Management has done an excellent job of keeping the lines of communication open, proactively engaging with physicians and other employees to allay any concerns and arm them with useful information. Physician and employee retention appears to be stable, the delivery of supplies has not been interrupted, and the facilities continue to have access to state of the art technology for treatment. The physicians and other employees reported no changes that they have observed since the 11 bankruptcy filings. Of course, the sooner that the Debtors can emerge from bankruptcy, the better for all concerned. Not that emergence will improve patient care, which has continued to be at the highest level, but it will remove any cloud of uncertainty, particularly in the view of outsiders with whom certain of the facilities have been in discussion concerning potential synergies and growth opportunities."
Rooster Energy filed with the U.S. Bankruptcy Court amended Disclosure Statement Exhibits A through E: Exhibit A: Rooster Energy confirmation hearing notice, Exhibit B-1: ballot Class 2, Exhibit B-2: ballot Class 5, Exhibit B-3: ballot Class 7, Exhibit B-4: ballot Class 8, Exhibit C: Rooster Energy non-voting parties notice and Exhibit D: Rooster Energy assumption and assignment notice. According to documents filed with the Court, "If the Rooster Restructuring Closing Date occurs, in full and final satisfaction of, and in exchange for, its Class 5 Claim, except to the extent that a holder of an Allowed Other Unsecured Claim agrees to a less favorable treatment, each holder of an Allowed Class 5a Claim will receive such holder's Pro Rata share of the Rooster O&G Other Unsecured Claim Distribution Fund, and each holder of an Allowed Class 5b Claim will receive such holder's Pro Rata share of the Rooster Petroleum Other Unsecured Claim Distribution Fund….The Notes Unsecured Claim are classified as a Class 5 Other Unsecured Claim, and the holders thereof shall be permitted to vote such Notes Unsecured Claim in Class 5 to accept or reject the Rooster Plan. The Cash necessary to fund the Other Unsecured Claim Distribution Funds will be funded by the Section 363 Consideration or the New Equity Consideration, as the case may be, and shall be distributed to holders of Allowed Other Unsecured Claims by the Disbursing Agent. No distribution will be made on account of any Disputed Other Unsecured Claim unless and until it becomes an Allowed Other Unsecured Claim. Cash withheld for Disputed Other Unsecured Claims will remain in the applicable Disputed Other Unsecured Claim Reserve pending resolution of whether such Claim is Allowed or Disallowed."